topic 2021 ARPA Child Tax Credit Earned Income Requirement in Deductions & credits

2021 ARPA Child Tax Credit Earned Income Requirement

rsimpkin — Mon, 05 Apr 2021 18:41:42 GMT

I made just under the $2,500 earned income requirement in both 2019 and 2020. In my research on the ARPA, I found that it supposedly eliminated the minimum Earned income requirement. That would make me eligible for the CTC. (See here)

Along with reading articles written by tax professionals online, I read the law directly and was not able to find that specific part which confirms this.

TurboTax still shows that the requirement is $2,500, but I really want to be sure this is accurate before I file since that would be a $3,600 loss and especially with having found conflicting information. I know TT only had so much time to update the service to reflect the new law mid-tax season, so mistakes are possible.

Does anyone know the precise, accurate information concerning this?

Re: 2021 ARPA Child Tax Credit Earned Income Requirement

Cynthiad66 — Mon, 05 Apr 2021 19:02:21 GMT

ARPA is for 2021 taxes.

Beginning in tax year 2021(the taxes you file in 2022) the Child Tax Credit will be expanded. The bill increases the amount that families claiming the Child Tax Credit receive from $2,000 to:

$3,600 for each child under 6
$3,000 for each child age 6-17

The credit is now fully refundable – that means that you are eligible for the credit even if you don’t owe taxes.

Although this credit is for next year’s tax filings, payments will also be sent in advance, over the course of the year, beginning no earlier than July 2021 so people don’t have to wait to file their 2021 taxes. The IRS will likely determine eligibility based on your most recent tax filing.

For more details regarding the ARPA and CTC use this link:

American Rescue Plan and Child Tax Credit

Re: 2021 ARPA Child Tax Credit Earned Income Requirement

rsimpkin — Mon, 05 Apr 2021 19:09:13 GMT

Thank you very much! My understanding now is that I will receive my 2020 tax return as represented currently, but that this is separate from the roll out of the 2021 CTC that will rollout in separate payments in advance of the 2022 filing season based on 2021 taxes. Since I have a child under 6, I will qualify and receive those payments but they should not be showing up now on the return that I'm currently filing as they are credits towards the next filing season.

Re: 2021 ARPA Child Tax Credit Earned Income Requirement

Moneika11 — Thu, 08 Apr 2021 05:26:03 GMT

Was my two daughters claimed on my taxes this time

Re: 2021 ARPA Child Tax Credit Earned Income Requirement

MayaD — Thu, 08 Apr 2021 14:25:18 GMT

You can preview your 1040 form to check if your daughters are listed in the dependents section.

Login to your return.
Select Tax Tools then Tools from the left menu.
Select Preview my 1040.
Scroll down to the Dependents section.

Please check the link below to see if your daughters qualify as dependents on your return.

Rules for Claiming a Dependent on Your Tax Return